7 Rewards Credit Cards for Paying Your Taxes

We receive compensation from our advertising partners for links on the blog. Here’s our full Advertiser Policy.

Editor’s Note: Some of the offers below may have expired or are no longer available on our site.

If you won’t be getting a tax refund this year, you can still possibly get something out of paying your taxes. Using credit cards for paying your taxes is a rewarding way to get a tax refund alternative with rewards points and sign-up bonuses. But, you have to use the right credit card. And the rewards have to justify the processing fee for using your

Again, although any credit card will pay your taxes, the rewards need to be greater than the additional processing fees you will pay. The won’t collect a penny of the credit card processing fees, but the three payment processors that partner with the IRS do for debit, credit, and digital wallet transactions that cost up to 1.99% of your tax bill.

2018 Tax Return Deadline

The federal 2018 tax filing deadline is April 17, 2018. If you need to file a state tax return, that filing deadline might be the same date (or later). If you have to “pay in” this year, you can make your payments interest-free.

Making any payments after the April 17 deadline are subject to additional interest and penalties that can erase any additional rewards after you pay the processing fee. Whether you pay with your taxes by credit or not, file your return before April 17 to ensure you don’t get hit with any surprise fees.

The Best Credit Cards for Paying Taxes

While many people think that the best time to apply for a new travel credit card is when they book their summer vacation or open their wallet for holiday travel and gifts, tax time can be just as rewarding.

Before you pay your taxes with just any run-of-the-mill credit card, you need to look at two important factors:

Purchase Rewards

Sign-Up Bonus Value

Each point you earn must be worth at least 2 cents each ($0.02) to offset the payment processing fees. The sign-up bonus can make up the difference.

If using a credit card to pay your taxes is the difference between receiving a sign-up bonus or not–paying a 2% processing fee is well worth it to get a mountain of bonus points in return.

Chase Sapphire Preferred

Sign-Up Bonus Offer: 50,000 points ($625+ value) after spending $4,000 in three monthsAnnual Fee: $0 the first year then $95

The Chase Sapphire Preferred is a go-to favorite for travelers that want flexible travel rewards without a steep annual fee commanded by premium travel credit cards. Here are three main reasons beyond the $625 in travel sign-up bonus to consider the Chase Sapphire Preferred:

By transferring your Ultimate Rewards points to your favorite frequent flyer program, you can easily make each point worth at least 2 cents each–the sweet spot to cancel out the processing fees on your tax bill.

You can also earn 3X points on travel immediately after earning your $300 travel credit. The additional travel benefits can easily pay the $450 annual fee if you fly on a regular basis. And you get full access to the 1:1 airline and hotel travel partners too.

Starwood Preferred Guest Credit Card from American Express

Sign-Up Bonus Offer: 30,000 points ($1,500+ value) after spending $3,000 in three monthsAnnual Fee: $0 the first year then $95

The Starwood Preferred Guest Credit Card from American Express is another top-notch hotel rewards card where your points are almost always worth between 2 to 3 cents each (or higher)! Rewards nights start at 2,000 points and the sign-up bonus can get you 15 free nights, the 5th night is free on 5+ night stays at Category 3-7 properties.

There will be some changes coming to the Amex SPG later in 2018, so this tax season can be an opportune time to apply for the card if you don’t already have it. While we don’t know the exact changes yet, we know what benefits the Amex SPG currently offers:

1:1 Airline Point Transfers

5,000 bonus points when transferring 20,000+ points at once

Up to 5x points on Starwood purchases

Upgraded SPG membership status

Because Starwood is merging with Marriott, you can also redeem your Starpoints for Marriott and Ritz-Carlton reward nights too. And you will enjoy complimentary Marriott Rewards membership status that mirrors your current SPG status–even if you’ve never stayed at a Marriott property before!

Chase Freedom

The Chase Freedom is a cash back credit card that earns up to 5% on rotating bonus categories. Lucky for you, your first $1,500 in tax payments earn 5% (5 points per $1) if you pay them on or before March 31, 2018. That’s because digital wallet payments are one of the bonus categories for the 1st quarter of 2018. If you wait until April to send payment, you will only earn 1% back.

This is the best cashback card for paying your taxes because of the 5% bonus, and your points can be worth even more if you have a Chase credit card combo that lets you redeem or transfer your points for travel with the Chase Sapphire or Ink Business Preferred.

The Amex Platinum earns Membership Rewards that can be transferred directly to Delta, Emirates, and Etihad to name a few of the 1:1 travel partners. Frequent flyers will benefit most from this premium travel rewards card. Additionally, cardholders can get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on their Platinum Card®. That’s up to $50 in statement credits semi-annually. However, they must be enrolled for this benefit to apply.

Chase Hyatt Visa [Expired]

Most hotel credit cards aren’t a good deal, but the Chase Hyatt Visa and its World of Hyatt rewards program are a rare exception as your points are easily worth more than 2 cents each per stay. Rewards nights start at 5,000 points per night and if the nightly rate is $200 cash, your points are worth 4 cents each!

You will also enjoy the following Hyatt benefits to keep earning rewards nights sooner:

Summary on Paying Your Taxes with a Rewards Credit Card

Most of us view paying taxes as going to the dentist–it’s something we do as quickly and painlessly as possible. While paying taxes is never fun, using a rewards credit card can actually help you make money by paying your taxes. That won’t happen if you pay your taxes with cash instead.

Jan 30, 2018Mary Renking

The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.